9.10.020 Definitions.
A. State-Defined Terms. Words or terms used in this chapter that are defined words or terms in Business and Professions Code Section 26001 or Health and Safety Code Section 11362.7 (the “Statutes”) shall have the meanings ascribed to them in the Statutes as they now read, or as they may be amended to read. These state-defined words and terms include, but are not limited to, “cannabis,” “cannabis accessories,” “cannabis concentrate,” “cannabis products,” “commercial cannabis activity,” “cultivation,” “delivery,” “distribution,” “license,” “live plants,” “manufacture,” “operation,” “person,” “premises,” “sell,” “sale,” “to sell.” Some of these terms are also set forth in Chapter 17.156. In the event of conflict in the definitions, the definitions in Chapter 17.156 shall control; provided the terms defined in subsection B of this section shall control over any other definition.
B. City-Defined Terms. The following words or terms used in this chapter have the following meanings:
1. “Applicant” means the individual or entity applying for the commercial cannabis business operator permit, including each entity or individual identified as part of the applicant team or who is an owner or principal of an entity applying for a permit.
2. “Commercial cannabis business” means any person or entity engaging in any business, operation or activity which is commercial cannabis activity under state law in the city.
3. “Commercial cannabis operator permit” means a permit required by the city of San Luis Obispo pursuant to this chapter to conduct commercial cannabis activity or a commercial cannabis business in the city.
4. “Financial interest holder” means a person or entity (other than a social equity owner) who has less than a ten percent aggregate ownership interest in the commercial cannabis business, has no active or passive direction, control, or management of the commercial cannabis business, and otherwise meets the definitions of financial interest holder as set forth in the Department of Cannabis Control Medicinal and Adult-Use Commercial Cannabis Regulations, California Code of Regulations Title 4 Division 19, Department of Cannabis Control. For purposes of this chapter, the aggregate ownership threshold herein shall supersede any current (twenty percent) or subsequently amended state threshold for a financial interest holder.
5. “Majority” means more than half. An equal number does not constitute a majority.
6. “Operator” means an applicant that has been permitted and conducts or conducted active cannabis operations in the city.
7. “Owner” means any of the following:
a. A primary principal;
b. A social equity owner;
c. Any person or entity engaged actively or passively in the direction, control, or management of any commercial cannabis business;
d. If available evidence indicates that an individual qualifies as an owner, the city may notify the applicant or licensee that it must either: (i) disclose the individual or entity as an owner and submit written acknowledgement that the owner will be subject to the requirements of the application and this chapter; or (ii) produce a written attestation under oath, along with any supporting documentation, demonstrating that the individual does not qualify as an owner.
8. “Principal(s)” means the individual(s), entities, and/or individual members of any entity, identified as part of the applicant team in the commercial cannabis operator permit application.
9. “Primary principal” means an individual or entity that has a ten percent or greater ownership interest, or has an immediately actionable entitlement to such interest, in the applicant business, commercial cannabis business, including, but not limited to, partners, members, officers, directors, and stockholders of every corporation, limited liability company, or general or limited partnership that owns, or has an immediately actionable entitlement to, at least ten percent of the stock, capital, profits, voting rights, or membership interest of the commercial cannabis business or that is one of the partners in the commercial cannabis business. Managers of a commercial cannabis business with the authority to establish, modify or control operational and policy directives and/or business operations plans for the business, whether by means of ownership or contractual authority, shall also be considered primary principals. On-site retail managers without such authority shall be considered employees and not primary principals.
10. “Responsible party(ies)” shall be one or more individuals who have an ownership interest in a commercial cannabis activity and are designated to be personally responsible for compliance with all terms and conditions of the commercial cannabis operator permit, all other permits required by the city, and all ordinances and regulations of the city. Any person having an ownership interest of more than fifty percent in a commercial cannabis activity shall be designated a responsible party on the application. If no individual owns more than fifty percent of a commercial cannabis activity, the individual owning the largest share shall be a responsible party, and if multiple individuals have the same percentage interest, each one shall be a responsible party. More than one individual can be designated a responsible party.
11. “Social equity owner” means the principal(s) of a commercial cannabis business with two percent equity or higher who earned at or below the median household income at the time the operator’s commercial cannabis operator permit application was approved by the city.
12. “Cannabis event” means a public or private event where compensation is provided or exchanged, either directly or indirectly or as part of an admission or other fee for service, for the provision, hosting, promotion or conduct of the event where consumption of cannabis is part of the activities. (Ord. 1722 § 1, 2022; Ord. 1647 § 4 (Exh. A (part)), 2018)